7) Under settings, click the drop down box, “Where do you want to hear your friends’ voices?” and select your preferred audio output.

8) Close Elgato Sound Capture.

Now, if you fire up your team chat client, such as Skype, you should be able to hear it in your speakers or headset, as well as see the volume levels move in Elgato Game Capture HD software, indicating that music is being fed into your recording or stream.

Please Note: Elgato Sound Capture only records PC audio. It does not record audio directly from PlayStation or Xbox chat.

How to Record Music in Elgato Sound Capture

1) Set up your Elgato Gaming hardware with your console of choice.

2) Open Elgato Game Capture HD software.

3) Open Elgato Sound Capture.

4) In Elgato Sound Capture, select “Music” from the Top Nav Bar.

5) Under settings, click the drop down box, “Where do you want to hear your music?” and select your preferred audio output.

6) Close Elgato Sound Capture.

Now, if you play music, you should be able to hear it in your speakers or headset, as well as see the volume levels move in Elgato Game Capture HD software, indicating that music is being fed into your recording or stream.

5) Under settings, click the drop down box, “Where do you want to hear your PC Gameplay?” and select your preferred audio output.

6) Under settings, click the drop down box, “Which output is your Elgato Game Capture Device connected to?” and select the appropriate selection.

7) Close Elgato Sound Capture.

Now, if you play any test message, you should be able to hear it in your speakers or headset, as well as see the volume levels move in Elgato Game Capture HD software, indicating that your Elgato capture card is receiving audio as well.

How to Use the Advanced Menu in Elgato Sound Capture

Elgato Sound Capture also features an advanced menu, where you can output all of your computer’s audio to multiple outputs, such as your Elgato Gaming hardware, your headset, and your speakers.

7) Under settings, click the drop down box, "Where do you want to hear your audio?" and select your preferred audio outputs.

8) Close Elgato Sound Capture.

Options for Saving Sound Capture Audio

With Elgato Sound Capture, you are able to mix the Sound Capture audio into your export, where it is "burned in", or you are able to export it separately, as you can do with webcam and graphic overlays as well.

1) Click the highlighted gear icon to open up the Preferences.

2) If you want to have the Elgato Sound Capture audio included in your export, check the box "Elgato Sound Capture" under the choice "Mix the following tracks to exports".

3) If you want to have the Elgato Sound Capture audio in a separate file from your export, check the box "Elgato Sound Capture" under the choice "Export to separate files".